How to achieve the land social function from tourism land uses: a case study in the Algarve (Portugal)

This paper presents the goals, methodology, expected results and conclusions of anew territorial management instrument - developed in the scope of the new Land, TerritorialOrdinance and Urbanism Act and complementary legislation currently passed in Portugal -aimed at capturing part of the unearned increments (surplus values) that accrue fromplanning decisions concerning land uses, land use changes and/or land use intensities. Itconsists in charging landowners/promoters a 20% fee on land surplus-values that result fromthe assignment of specific building capacities - objectively settled in territorial plans - tourban interventions especially targeted to tourism uses.This captured value should reinforce municipalitiesŽ financial sustainability, and is supposedto be reassigned to social purposes, such as social housing or urban rehabilitation, thussupporting the achievement of the land social function.The proposed methodology is applied to the Urban Development Plan of the Planning Unit 11of the municipality of Lagoa, located in the Algarve, Portugal. However, it is easilyapplicable to other municipalities, whichever is their geographic location, and to manydifferent kinds of territorial plans